1. Economic Development in Los Angeles:
A New Approach for a World Class City
Presentation to the Los Angeles City Council
Ad Hoc Committee on Economic Development Structure
December 12, 2012

2. Project Context
Council Actions Previous Reform Efforts
Explore establishing an Economic 1992: Direction to CAO and CLA to
Development Department (EDD) study creation of an Economic
Development Department
Evaluate current City economic
development activities 1993: Economic Development: A
Strategy for Leadership
Assess other cities’ economic
development delivery structures 1996: Adoption of General Plan
Framework Element, including policy for
Support the concept of an EDD +
reorganization of economic development
Nonprofit Partner (C.F. 08-3050)
1999: Public Participation Task Force
Create an Ad Hoc Committee on
on Economic Development
Economic Development Structure
2007: Los Angeles Economy and Jobs
Committee
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 1

3. City Government & Economic Development: A Functional Definition
Citywide Strategic Planning
& Policy Development/Evaluation
Real Estate Business & Industry
& Development Services Development & Services
Real Estate & Infrastructure Development Business & Industry Development
Asset Management Business & Industry Services
Transaction Services Small Business Services
Workforce Development
Business Improvement Districts
Tourism Development
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 2

4. Key Findings: Existing Conditions & Stakeholder Aspirations
1. STRONG FUNDAMENTALS are consistent with scale of nation’s 2nd
largest city
2. WIDESPREAD CONSENSUS that organizational change is needed to
support improved economic development outcomes
3. NEED FOR CITYWIDE FOCUS and economic development prioritization
4. A CRITICAL GAP in economic development in the wake of CRA/LA
dissolution
5. A FRAGMENTED APPARATUS that is reactive in nature, with
mismatched responsibilities and resources
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 3

5. Proposed Delivery Model
Electorate
Mayor City Council
City
Chief Legislative
Administrative
Deputy Mayor for Analyst
Officer
Economic
Development
FilmL.A.
Contract Economic Other ED- Economic
Proprietary
Development Related Development
Citywide Economic Agencies
Department Departments Partners
Development Nonprofit
City Planning | Building & Safety | Transportation | Recreation & Parks | Cultural Affairs | Convention Center
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 4

6. New Economic Development Department (EDD): Services & Oversight
Implement small business services,
Provide service and support to the City’s
workforce development, BIDs, and industry-
business, key industries and communities
specific service desks
Manage contracts with CEDN and FilmL.A.;
Oversee the new Citywide Economic oversee CEDN’s transactional, asset
Development Nonprofit (CEDN) management, real estate, and strategic
planning services
Frame key issues and priorities; coordinate
Prepare a citywide economic
between key constituencies; utilize CEDN
development strategy
resources; obtain Mayoral/Council approval
Serve as clearinghouse for the City’s Manage resources (e.g., workforce
distribution of federal and state resources development) and act as City signatory to
for economic development deploy resources on specific CEDN projects
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 5

7. New Citywide Economic Development Nonprofit (CEDN):
Transactions & Asset Management
Dispose of surplus properties from CRA/LA,
Manage the City’s strategic real estate
reposition income-producing assets, and
assets
redevelop underutilized City assets
Assume management of Los Angeles
Manage the City’s off-budget finance
Development Fund (LADF) and Industrial
entities
Development Authority (IDA)
Package fair deals and best returns to the City
Advance major economic development
while minimizing risk; oversee/expedite master
and public-private real estate projects
planning and entitlements
Provide expert analysis and negotiate Subject to appropriate City oversight and City
transactions approval
Produce the citywide economic development
Conduct City-specific economic research
strategy at the EDD’s direction; track
and analysis
performance and refine City strategy
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 6

8. EDD Implementation (FY 2012-13)
Task Jan Feb Mar Apr May Jun Jul
Finalize Recommendations
Draft Ordinance to Establish EDD
Refine & Propose FY 2013-14 EDD Budget
Conduct Executive Search & Appoint EDD General Manager
Approve FY 2013-14 EDD Budget
Form an Economic Development Cabinet
Negotiate and Approve CEDN Service Contract
EDD Commences Operation
Milestones
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 7

9. Conclusion
HR&A Advisors, Inc. Economic Development in Los Angeles: A New Approach for a World Class City | 8

10. Economic Development in Los Angeles:
A New Approach for a World Class City
Presentation to the Los Angeles City Council
Ad Hoc Committee on Economic Development Structure
December 12, 2012